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June 13, 2014
17:09 EDTFSSFederal Signal reports unfavorable court ruling in Latvian commercial dispute
Federal Signal announced that a Latvian court returned a ruling against the Company's Bronto Skylift Oy Ab subsidiary in a lawsuit relating to a commercial dispute. The dispute involves a transaction for the 2008 sale of three Bronto units that were purchased by a financing company for lease to a Latvian fire department. The lessor and the Latvian fire department sought to rescind the contract after delivery, despite the fact that an independent third party, selected by the lessor, had certified the vehicles satisfied the terms of the contract. The adverse judgment requires Bronto to refund the purchase price and pay interest and attorneys' fees. The Court denied the lessor's claim against Bronto for alleged damages relating to lost lease income. The ruling will not impact Bronto's operations or the ability to conduct its business in the future. The company continues to believe that the claims against Bronto are weak and that Bronto fully satisfied the terms of the contract. The company intends to pursue all available post-trial appeals to seek to have the ruling overturned. Legal counsel has indicated that the appeal process could take two years or more. As of March 31, the company had not accrued any liability in its financial statements for this lawsuit. In evaluating whether a charge to record a reserve will be necessary, the company will analyze all of the available information, including the legal reasoning applied by the Court in reaching its decision. This reasoning will be included in the full written judgment that is scheduled to be issued in the coming weeks. The amount of any associated charge could range from zero to approximately $4M.
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January 29, 2016
12:00 EDTFSSFederal Signal sees sale of Bronto Skylift contributing about 3c for FY15
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